1. Aviation Turbine Fuel (ATF) is cheaper than Petrol by Rs 11-14 per liter in Mumbai. (depending on the fuel supplier) Domestic flight Mumbai Prices (ATF): Rs 61.98 per liter (Indian Oil)
2. For international flights the (ATF) is still cheaper.. by Rs 25 per liter.
International Flight Mumbai Prices (ATF): Rs 48.7 per liter (Indian Oil)
3. Domestic Mumbai Petrol Prices: Rs73.81 per liter (Indian Oil)
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So its amazing that there are 10 airlines in India and they can influence the govt and get ATF fuel at a price cheaper by Rs 11-14 per liter of ATF fuel price.. while the whole country of 1.x Billion people pay more and cannot influence the Indian Govt enough to get a price parity to ATF fuel for Petrol??
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As per DGCA 396.31 lakh people traveled by Air from Jan to August 2011 ie. in 8 months.
- 49.53 lakh people per month .. which translates to
- 1.65 lakh people per day(30 days)...
there is one more change.. Source to Destination = 1, Destination to Source (back) = 2 since every time an individual travels its counted as a different passenger when actually its the same passenger travelling back..so actual number of unique people travelling is 1/2 ie
- Approximately 82,565 unique passengers per day.
So there are approximately 82,565 individual air passengers who benefit from the ATF fuel prices while there are a millions of people in India who use Petrol and loose out due to higher fuel prices every day!!.
Conclusion: I am not advocating an increase in ATF or decrease in Petrol prices.. The question is about availability of all relevant information before making a decision about bailing out pvt companies. Definitely Kingfisher airlines does not need to be bailed out. in fact kingfisher airline market share is 18.8% which means we are talking about 15,522 individual passengers being impacted on a daily basis. The airline industry has been privatized and many other pvt airlines have shut shop we need to allow for kingfisher to also learn to swim or sink. The industry can accommodate these fluctuations.
India should spend more time and energy in providing better public transportation with connectivity. Railway network needs to be strengthened to carry more percentage of traffic (goods and individuals)
Indian Cities Petrol Prices: By the way "Bengaluru" is the city where the Petrol prices are the highest.
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4 comments:
well we are talking about congress ,
who seems to care only for riches .
Anonymous:
Though this is certainly not good for the ruling party (congress) but this was the case (ATF cheaper than petrol) even when there were other parties in power..
the thing is more than 50% of the cost of fuel is taxes at central and state level.. It is a major revenue source for state and central govt.
Now the real reason is basic economics..
ATF fuel sale is less than 10% so even if they tax it at higher levels the state and central govt donot get enough money..
petrol is consumed at such large levels.. that taxing petrol is a good source of income for central and state govt.
My real worry is peak oil.. and its impact we.. can already see the crude oil price has started rising.. with improving GDP on a worldwide basis..
=happy investing
whatsup-indianstockideas.blogspot.com
Indigo & Spicejet are in profits in the same market. It is due to good management.
Kingfisher management priorities seem to be on Calender Girls and Formula 1 racing.
Anonymous:
I think Mallya is used to getting bail out package..
- Managalore Chemicals and Fertilizer
- UB Engineering.
and now kingfisher airlines... so this makes him complacent.. as its always in the back of his mind that we can always go through restructuring..
Anyway.. airlines is a dying industry... I think its best that Mr Vijay Mallya decides to leave airline business ..
and maybe concentrate on what he does best.. liquor!!
But then he does not like loosing money.. so its still not yet time.. "he will take his pound of flesh from kingfisher airlines"
=happy investing
whatsup-indianstockideas.blogspot.com
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